Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
NRG Energy’s second quarter of fiscal 2026 was defined by the transformative acquisition of the LSP portfolio, which doubled the company’s generation capacity and deepened its integrated retail-generator model. The deal drove a sharp increase in electricity sales volumes and improved cost efficiency, as the company captured synergies from owning a larger share of supply for its customer base. These benefits contributed to a swing to profitability and expanded margins across key segments, partially offset by higher depreciation and interest costs associated with the acquisition financing. While top-line momentum was strong, operating cash flow declined year over year, and the resulting increase in leverage kept the current ratio below one, highlighting the capital intensity of the integration.
Revenue
$7.48B
+10.99% YoY
EPS (Diluted)
$2.31
+472.58% YoY
Operating Income
$976M
No YoY data
Source: SEC XBRL
Nrg Energy (NRG) reported Q2 FY2026 revenue of $7.48B, up 11.0% year over year. NRG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.49 | 1.74 | Miss -14.2% |
| Mar 2026 | 1.48 | 1.80 | Miss -17.6% |
| Dec 2025 | 1.03 | 0.97 | Beat +6.5% |
| Sep 2025 | 2.75 | 2.12 | Beat +29.7% |
Adjusted (non-GAAP) EPS of $1.49 versus the $1.74 analyst consensus — a -14.2% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.31.
4 reported segments · SEC XBRL
Segment revenue totals $7.49B; with -$9M of reconciling items (corporate, unallocated and eliminations) it ties to the $7.48B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure NRG itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
On January 30, 2026, NRG completed the acquisition of the LSP Portfolio, adding 18 natural gas-fired and dual fuel facilities totaling approximately 13 GW, along with the CPower demand response platform. The transaction was funded with $6.4 billion in cash and 24.25 million shares of common stock, and it enabled the company to expand its integrated generation-retail model into the East.
Source: 10-Q Item 2 MD&A
The 415 MW T.H. Wharton facility reached commercial operations on May 26, 2026, and the company entered into a completion bonus grant agreement with the PUCT for up to $54.72 million, payable in ten annual installments. Two additional TEF-supported projects, Cedar Bayou 5 and Greens Bayou 6, remain under construction.
Source: 10-Q Item 2 MD&A
In early 2026, NRG adopted an integrated generation and retail strategy in the East, similar to its Texas operations, to reduce reliance on third-party electricity procurement and improve earnings stability, lower transaction costs, and reduce credit exposure.
Source: 10-Q Item 2 MD&A
PJM’s Base Residual Auction for the 2028/2029 delivery year cleared at the FERC-approved cap of $325/MW-day, at which NRG cleared approximately 6,839 MW from its PJM generation fleet, representing expected capacity revenues of about $811 million.
Source: 10-Q Item 2 MD&A
During the first half of 2026, the company repurchased $921 million of shares at an average price of $156.52, and it raised the annual common stock dividend to $1.90 per share, an 8% increase from 2025, targeting 7-9% annual dividend growth thereafter.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Total liabilities surged 60.9% year-over-year to $35.1 billion, and the current ratio fell to 0.97, indicating that current liabilities exceed current assets. This heightened leverage could constrain financial flexibility and increase borrowing costs.
Source: 10-Q Balance Sheet (XBRL)
Operating cash flow declined 27.4% year-to-date to $948 million, driven by working capital changes and higher interest payments. This trend may limit the company’s ability to service debt and fund capital programs.
Source: 10-Q Cash Flow (XBRL)
The LSP acquisition caused a 65.8% increase in total assets, and successful integration is critical to realizing anticipated synergies. Failure to integrate effectively could lead to cost overruns and impair expected financial benefits.
Source: 10-Q Balance Sheet (XBRL)
Segment margins exhibit significant volatility—East margin improved 27.0 percentage points while Texas margin contracted 2.9 points—indicating exposure to wholesale electricity and natural gas price fluctuations that could affect future earnings.
Source: 10-Q Segment Breakdown (XBRL)
Investing cash outflows totaled $7.7 billion year-to-date, primarily from the LSP acquisition, and ongoing construction of two TEF projects plus environmental compliance may require substantial additional capital, potentially straining free cash flow.
Source: 10-Q Cash Flow (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.48 $B | 6.74 $B | +10.99% |
Operating Income $M | 976.00 $M | 0.00 $M | — |
Net Income $M | 506.00 $M | -104.00 $M | +586.54% |
EPS (Basic) $ | 2.32 $ | -0.62 $ | +474.19% |
EPS (Diluted) $ | 2.31 $ | -0.62 $ | +472.58% |
SG&A Expense $M | 562.00 $M | 724.00 $M | -22.38% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
NRG Energy reported Q1 2026 revenue of $10.26B (+19.5% YoY), but net income collapsed 83.3% to $125M as operating cash flow turned deeply negative at -$169M, reflecting the financial impact of a major acquisition that dramatically expanded the balance sheet.
NRG Energy reported FY2025 revenue growth of 9.2% to $30.7B, but profitability declined sharply as operating income fell 23.9% to $1.85B and net income dropped 23.2% to $864M, while cash surged 387% to $4.7B largely due to significant financing activity.
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